A no-panic guide to the perfect wedding

Before everything culminates in a tear-jerking exchange of vows and rings, things are less likely to be as blissful on the financial front for the soon-to-weds. Other than guests who don’t RSVP, these couples likely suffer headaches over debts that come with the wedding. Tens of thousands of dollars have to be forked out for, among other things, wedding clothes, jewellery, photographers and the wedding reception.

Picture credit: @thebridestory

To help alleviate some of those pre-marital jitters, we have come up withan easy-to-follow guide to a splendidly budgeted wedding. After all, you would need to save every dime you can for the honeymoon and your life after saying ‘I do’, don’t you?

Picture credit: @thebridestory

Paying for the wedding: Credit cards vs Personal loans

The Good

Personal Loan

Credit Card

Lower interest rates
If you were to compare personal loan packages on GoBear, you’d find interest rates are fixed between 4.5% and 8.7% per annum.

Discounts on hotel banquets
Until 31 December, UOB credit card holders can enjoy S$88++ off each table at PARKROYAL on Pickering.

Good cashback
For an instance, ANZ MoneyLine Term Loan is rewarding 2% cashback on loan amount until 31 March 2017.

Good cashback
Cashback cards such as American Express True Cashback and Standard Chartered MAHATTAN World MasterCard can churn back substantial savings for larger spending.

Lightning quick approval time
We are talking as quick as one minute upon application, which means you can go get hitched tomorrow if you want.

Redemption of airmiles
Frequent flyer miles on miles credit cards can be cashed in for honeymoon.

Extendable credit
This can be as high as 10x your monthly income.

Consolidated debt
This makes it easier to manage and monitor spending.

The Bad

Personal Loan

Credit Card

No variety of rewards
we’re talking air miles, cash backs, dining discounts and rewards points here. Certain perks are also only available to premier customers.

Eye-popping annual interest rates of up to 25%
Definitely not a good idea for partial repayments and rolling of outstanding balances.

No bills consolidation
Spreading the expenditure over all your credit cards can be cumbersome for tracking purposes.

How to start planning: The budget checklist

Picture credit: @thebridestory, @jadapoonphotography

We have seen grandiose weddings that cost over $100,000. We have also seen humbler affairs that cost as little as $900. Our point is, everyone has different definition of what comprises the ideal wedding. While your bride-to-be might want to celebrate her big day with Disneyesque aplomb, you may be happy with just an austere outdoor ceremony at Fort Canning Park. So, don’t assume that both your expectations are aligned and everything will fall into place. Have a heart-to-heart talk and come to a compromise.

Pulling off a budget wedding without sacrificing any romance is not the stuff of dreams. During your tête-à-tête, ask yourselves the following questions and tick our checklist accordingly:

Do you really need to invite everyone on the initial shortlist of guests (e.g. children)?

Can you settle for a weekday dinner or weekend lunch reception? Depending on the location, they can cost half of a weekend dinner.

Is it a must to stick to big chain hotels like The Fullerton? Consider alternative venues such as the Botanic Gardens or venues tied with National Parks Singapore, quaint cafés with a patio and restaurants that suit the wedding theme.

Have you shopped around for all-inclusive bridal packages? You could be saving hundreds of dollars compared to doing it à la carte style.

Instead of paying a premium for a Jeju Island wedding photography package, are you able to rope in a photographer or videographer friend for a favour or a special “friend-rate”?

Considering that honeymoons these days are considered optional, how about a local staycation at a really nice hotel loft over, say, Venice?

There is room to scrimp on the extras (e.g. bridal car, wedding décor, invitation cards) right?

Short of your savings, how should you finance the whole shebang fast?

The verdict: Which one should you choose?

Picture credit: @thebridestory, @airballoonproject

We could come up with a thesis, but the short answer is this: unless you are highly confident of paying off the monthly credit card bills in full and your cashbacks and rewards are able to offset a good chunk of the total cost, personal loans make a better option for your wedding financing plans.

Because the debt is centralised and the annual interest rates are fixed, repayment of personal loans is expected to be consistent and efficient. For credit cards, it is easy to slide into a toxic habit of paying only the minimum sum and it would be too late when the compounded interest figure indicated on the bill gives you a mini heart attack. With a long-term approach in mind, the potential savings and fuss-free dealings of personal loans would go a long way in financing your next big headache: your marital home.